OECD says economic slowdown entrenched in Russia, India & China

China and India will continue to face an economic slowdown over the coming economic quarters. Source: PhotoXpress

The think-tank also sees a continued economic slowdown in the G7 countries over the next few quarters.

Giving a glum outlook for the leading
emerging global economies, the Organization for Economic Cooperation &
Development (OECD) said on Thursday that Russia, China and India will continue
to face an economic slowdown over the coming economic quarters.

The Paris-based economic think-tank, was
cited by Reuters as saying that its composite leading indicator for China held
steady in July from June at 99.1, a rate consistent with an economic slowdown
and below the long-term average of 100. The indicator for India also remained
stable but at the even lower level of 98.1, while Russia's index dropped to
99.1, from 99.6 in June, Reuters added.

China managed a minor economic recovery but
output in the Eurozone, Japan and South Korea slowed sharply, the OECD said, adding
that Britain and Italy also showed shrinking output data. Some emerging
economies showed relatively resilient growth, according to the OECD.

Related:

The easing for the G20 (Group of 20) area
marks the third quarter running of slowing growth but “masks diverging
patterns,” with a moderate slowing in the United States and contraction in the
Eurozone, Reuters cited the OECD as saying.

Economic Growth in China picked up to 1.8
percent from 1.6 percent and in Brazil to 0.4 percent from 0.1 percent, in
Indonesia to 1.6 percent from 1.4 percent and in South Africa to 0.8 percent
from 0.7 percent, OECD said.

According to the OECD, the slowdown was
less marked in the United States where activity growth eased to 0.4 percent
from 0.5 percent, in Germany to 0.3 percent from 0.5 percent and in India 0.8
percent from 1.1 percent, Reuters said.

Developed countries will also continue to
struggle in the coming quarters, the OECD was cited by Reuters as saying. The organisation last week cut its growth
forecasts for most countries in the Group of Seven developed economies, saying
that the eurozone's debt crisis had spread to the region's core.

“Composite leading indicators, designed to
anticipate turning points in economic activity relative to trend, show that the
loss of momentum is likely to persist in the coming quarters in most major OECD
and non-OECD economies,” the OECD was cited by Reuters as saying in a
statement.